Rupee Holds Gains as Oil Prices Ease
The Indian rupee hovered around 95.75 per dollar, extending gains from the previous session as softer oil prices, expected portfolio inflows and continued RBI intervention helped limit downside. Brent crude fell about 2% to $101.7 a barrel as hopes for a diplomatic solution to the Iran conflict and improving Saudi energy shipments eased supply concerns. The fully subscribed $2.3 billion NSE IPO could also attract foreign institutional inflows, while improved capital flows and RBI measures to encourage overseas FX deposits and borrowings have lifted reserves to about $781 billion. However, strong importer dollar demand and elevated oil prices remain headwinds. A firm dollar could add pressure, with Goldman Sachs now expecting the Federal Reserve to deliver another 25-basis-point hike in October.
75 per dollar, extending gains from the previous session as softer oil prices, expected portfolio inflows and continued RBI intervention helped limit downside. 7 a barrel as hopes for a diplomatic solution to the Iran conflict and improving Saudi energy shipments eased supply concerns. 3 billion NSE IPO could also attract foreign institutional inflows, while improved capital flows and RBI measures to encourage overseas FX deposits and borrowings have lifted reserves to about $781 billion. However, strong importer dollar demand and elevated oil prices remain headwinds.
A firm dollar could add pressure, with Goldman Sachs now expecting the Federal Reserve to deliver another 25-basis-point hike in October.